Why are star artists keen to join companies as "officials"?
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In recent years, more and more star artists have joined companies, with various positions, among which "chief xx officer" is the most common.
Industry insiders pointed out that this move is intended to avoid relevant legal risks, but this "curve endorsement" behavior is playing a legal borderline and should be regulated.
"Chief Product Experience Officer", "Chief Recommendation Officer", "Chief Star Witness Officer", "Chief Creative Officer"... In recent years, there have been more and more fancy "official titles" for celebrity artists.
Most of these "official titles" are empty positions. Why are star artists keen to join companies as "officials"?
Why do companies want to set up these positions?
Celebrity endorsements frequently overturn
The celebrity endorsement for the brand could have achieved a "win-win". The former used their public influence to create advertising effects, which brought huge attention, users and sales to the latter, in order to obtain endorsement fees.
However, in recent years, the situation of celebrity endorsement overturning has occurred frequently, involving a wide range of fields.
For example, in September 2021, a tea company that a well-known host once endorsed ran away, causing many franchisees to lose everything.
At that time, the host responded that he had signed a "cooperation termination agreement" with the other party in June 2021.
According to media statistics, since 2014, there have been more than 10 explosions of Internet investment and wealth management platforms endorsed by celebrities.
It is beyond reproach for celebrities to do commercial advertisements, but they cannot be without bottom lines and boundaries.
Liu Junhai, a professor at the Law School of Renmin University of China, said that with regard to celebrity endorsements, the Advertising Law has made relatively clear regulations. If a product or service is recommended or certified in the advertisement, the market supervision department shall confiscate the illegal income and impose a fine of more than one time but not more than two times the illegal income.
"In addition, false advertisements of goods or services related to the life and health of consumers cause damage to consumers; if they clearly know or should know that the advertisement is false, but still recommend or prove the goods or services in the advertisement, the advertising spokesperson shall bear joint and several liability. "Liu Junhai said.
Avoid legal risks
Zhao Zhanzhan, deputy director and lawyer of Beijing Yunjia Law Firm, believes that it is precisely because the endorsement overturned will not only lead to damage to the image, but may also bear certain legal liabilities. Therefore, some celebrities use the name of the company they join to advertise their endorsements. Avoid legal risks.
Judging from the public information, the trend of celebrities joining the company began in 2015, because the new advertising law that was implemented that year clarified the legal responsibility of advertising spokespersons, and celebrities who endorsed false advertisements will be banned from endorsement for 3 years.
If civil liability arises, the advertising spokesperson may also bear joint and several compensation.
Since then, there have been more and more cases of celebrities being "officers", with various names, with "chief xx officer" being the most common.
Industry insiders pointed out that it has gradually become a trend that traffic stars join companies as "officials", and one gets a name and one gets a profit.
On the one hand, for enterprises, compared to hiring celebrities as image spokespersons, the entry cost of celebrities is lower, and the sensational effect may be greater; on the other hand, celebrities joining enterprises can avoid the new advertising law and avoid related legal risks. .
But this kind of "curve endorsement" behavior is playing a legal borderline and should be regulated.
The industry insider pointed out that it is obviously unreasonable for celebrities to enter the enterprise as "officers" and earn a lot of income, but the cost is very small after the accident.
Regulations tend to be stricter
In response to the above problems, the Shanghai Administration for Market Regulation further defined endorsers in the "Guidelines for the Compliance of Commercial Advertising Endorsement Activities".
Among them, it is clear that well-known literary and art workers, well-known sports workers, experts and scholars, "Internet celebrities" and other star artists, social celebrities, etc., because of their highly identifiable identities, although the identities are not indicated in the advertisements, the public can easily identify them through their images. Those who can identify their identity belong to advertising endorsements in their own image and using their own independent personality.
Even if it is recommended and certified by other identities that are not well known to the public, such as "XX experience officer", it cannot change the identity characteristics of the advertising spokesperson.
"The 'experience officer' can't change the identity characteristics of the advertising spokesperson, blocking a back door for invisible endorsement advertising. The vest of the 'experience officer' is not easy to wear, which is a good thing for the industry, but also bad for celebrities, enterprises and consumers. Speaking is also a good thing." Zhao Zhan said.
It is worth mentioning that the trend of stricter supervision of celebrity endorsement commercial advertising is becoming more and more obvious.
In December 2021, the Shenzhen Municipal Market Supervision and Administration Bureau publicly solicited opinions on advertising compliance guidelines in the fields of real estate and medical care.
Previously in November 2021, the "Guidelines for the Compliance of Star Commercial Advertising Endorsements" issued by the Zhejiang Provincial Market Supervision Bureau aimed at the phenomenon of "one-shot deal" in celebrity endorsement activities, emphasizing that celebrities should track and pay attention to endorsement companies and products. When a problem is found, remedial measures should be taken in a timely manner. When a problem occurs, it should actively cooperate with the relevant government departments to investigate, and take the initiative to assume the corresponding civil liability in accordance with the law.
Industry insiders pointed out that the introduction of compliance guidelines on commercial advertising endorsements in Zhejiang, Shanghai and other places will trigger a demonstration effect across the country.
In the future, more and more provinces will issue relevant compliance guidelines, which will help guide celebrities to standardize endorsement behaviors in commercial advertisements and prevent the risk of illegal and false endorsements.
Yang Zhaokui
Yang Zhaokui